9911796707
TMI Blog2016 (12) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... dividend earned on shares held as stock-in-trade, Also in the case of CCI Ltd. Vs. JCIT (2015 (10) TMI 2373 - ITAT PUNE ) has held that when no expenditure has been incurred by the assessee in earning the dividend income no notional expenditure could be deducted from the said income. The Hon'ble High Court further held that when the assessee has not retained shares with the intention of earning dividend and the dividend income is incidental to business of sale of shares no disallowance u/s. 14A of the Act is to be made. - Decided in favour of assessee - ITA No. 1557/PN/2014, ITA Nos. 1558 & 1559/PN/2014 - - - Dated:- 28-9-2016 - SHRI R.K. PANDA, AM AND SHRI VIKAS AWASTHY, JM For The Assessee : Shri C.H. Naniwadekar For The R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Assessing Officer during the course of assessment proceedings made disallowance under the provisions of section 14A r.w. Rule 8D as under : Assessment Year Disallowance u/s. 14A r.w. Rule 8D made by A.O. 2008-09 ₹ 8,61,690/- 2009-10 ₹ 7,69,897/- 2010-11 ₹ 8,60,942/- Aggrieved by the additional disallowance made by the Assessing Officer, the assessee preferred appeals before the Commissioner of Income Tax (Appeals) for the respective assessment years. The Commissioner of Income Tax (Appeals) upheld the findings of Assessing Officer. Now, the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14A is to be made where securities and shares are held as stock-in-trade or investment is made for business purpose. 4. On the other hand Shri Rajeev Kumar representing the Department vehemently supported the findings of Commissioner of Income Tax (Appeals) and prayed for dismissing the appeals of the assessee. 5. We have heard the submissions made by the representatives of rival sides and have perused the orders of the authorities below. The only issue raised in all the three appeals is additional disallowance made u/s. 14A r.w. Rule 8D in respect of dividend income on shares and mutual funds held by assessee as stock-in-trade. It is an undisputed fact that the shares and mutual funds held by the assessee are for trading purpose and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowance u/s. 14A is warranted on dividend earned on shares held as stock-in-trade. Our view is fortified by the decision of Mumbai Bench of the Tribunal in ITA No. 6711/Mum/2011 in the case of DCIT Vs. M/s. India Advantage Securities Ltd. for the assessment year 2008-09 decided on 14-09-2012. In the said case, the assessee had received dividend income of ₹ 1,40,859/- on shares shown as stock-in-trade in the books of account of the assessee. The assessee had not made any disallowance of expenses relating to exempt income. The Assessing Officer made disallowance u/s. 14A r.w. Rule 8D. The Commissioner of Income Tax (Appeals) held that disallowance under Rule 8D could be made only with respect to investment and not in stock-in-trade. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
